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BMW lifts annual profit forecast to 9.5%-10.5% By Reuters

by Mike Robinson

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© Reuters. FILE PHOTO A BMW car can be seen in Barcelona at the Automobile Show, Spain on September 30, 2021. REUTERS/Albert Gea

BERLIN (Reuters) – BMW lifted its annual profit margin forecast to between 9.5% and 10.5% from 7% to 9%, the company said in an ad hoc statement on Thursday, as higher prices for new and used vehicles outweigh the effect of supply chain issues.

Also, the carmaker raised its outlook for financial segment return on equity to 20%-23%. It previously was 17%-20%. In addition, it stated that its auto segment will have free cash flow of around 6.5 billion euros.

According to the company, “While the shortage of semiconductors is expected to impact further production and deliveries to customers in coming months”, BMW AG stated that it expects that continued positive pricing effects on both pre-owned and new vehicles will offset these volume reductions in the current fiscal year.

BMW expects to release its November 3 results.

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